Hampton Property Assessments Are Increasing

HAMPTON — The soaring real estate values and rapid growth of the city's tax base in the mid-1980s is continuing to slow, according to the most recent figures released by the city assessor's office.

The figures, however, show a larger increase in reassessments for the average homeowner than those predicted this spring when the city estimated revenue for its 1989-90 budget. The increased assessments mean many residents began paying higher than anticipated tax bills in June.

Reassessment notices went out in June, but the city did not release its compiled figures until this week.

The city's tax base, a compilation of all taxable properties, including existing buildings and new construction, grew by about 7.7 percent between the 1989 and recently completed 1990 reassessments. The previous year, growth averaged about 9.7 percent.

In reassessments between 1985 and 1988, the tax base was growing at an average rate of 12.44 percent a year, according to city records.

New construction also has slowed. According to city figures, construction peaked in 1987 and 1988, with $111.3 million and $115.7 million. New construction in the 1990 report was $78.5 million.

"The years 1983 to 1988 have probably seen the most rapid growth in the region's history," said City Manager Robert J. O'Neill Jr. "The fact that it slows down some is not unusual and probably not bad."

The total tax base, recorded in the Land Book delivered to city officials this week, is $3.76 billion. Homes and residential properties make up the bulk of the figure, $2.74 billion; commercial property accounts for another $731 million; and apartment projects total $292 million.

New construction accounted for $78.5 million, or 2.3 percent of the growth. The rest of the increase reflects the increasing prices sellers are receiving for real estate, including homes.

During its budget deliberations this spring, the city estimated that reassessments for homeowners would jump an average of 4.6 percent. The figures from the Land Book actually show a higher increase for homeowners - 6.1 percent.

Under the city's original estimate, the rise in assessments coupled with a 3-cent increase in the real estate tax rate would have meant about a 7.4 percent increase in the tax bill for the average home.

With the higher assessed values, the average tax bill is up 8.9 percent.

For example, the typical owner of a house assessed at $100,000 in 1988 received an assessment this year of $106,100. The tax bill, $1,140 last year, would jump to $1,241 because of the higher assessment and higher tax rate.

In its budget, the city projected $42.8 million in revenue from real estate taxes. The new Land Book numbers show the city would collect $44 million if everyone paid their full tax bill. Some groups, such as senior citizens, receive tax relief. Others simply don't pay their taxes.

Reassessment figures typically lag about a year behind the market, said City Assessor John Petty.

For the 1990 assessment, for example, assessors looked at property sales between June of 1987 and June of 1988.

While homeowners continue to pay the bulk of the real estate taxes in the city, commercial properties and apartment projects are slowly picking up more of the tax burden.